- Sub-Saharan Africa spends only 0.02% of GDP on health R&D
- Low investment limits innovation and leads to import dependence
- Generics remain key strategy for local manufacturers
Low levels of investment in health research and development (R&D) in sub-Saharan Africa are expected to force local pharmaceutical companies to focus on generic drug production rather than innovation. This trend holds back the region's ambitions for pharmaceutical independence, according to a report published by Fitch Solutions in mid-March 2026.
Topic “Limited R&D funding will hinder sub-Saharan Africa's pharmaceutical sovereignty ambitions”, The report said health-related R&D spending in sub-Saharan Africa averages only 0.02% of GDP, compared to 0.08% in Europe and 0.04% in North America. Even in leading countries in the region such as Kenya (0.19%) and South Africa (0.13%), developed economies spend only a small fraction of the amount allocated to health R&D.
In absolute terms, Kenya's $52.4 million and South Africa's $466 million R&D investments are insufficient to support the clinical trial infrastructure and research institutions needed to discover and develop new medicines. This underinvestment reinforces the region's dependence on imports of essential medicines. Markets such as Kenya, Nigeria and Ghana face persistent trade deficits in pharmaceuticals, with negative balances of $500 million, $950 million and $410 million respectively in 2024.
Insufficient investment to build meaningful pharmaceutical innovation capacity also leaves the sector facing supply chain disruptions and price pressures. Given competing budget priorities, particularly infrastructure development, Fitch Solutions does not expect countries to significantly increase health R&D spending in the short to medium term.
As a result, pharmaceutical manufacturers operating in sub-Saharan Africa may continue to prioritize generic drug production rather than developing innovative treatments tailored to the region's specific disease burden.
A path towards generic drug self-sufficiency
Generic drug production remains the most commercially viable option for manufacturers in Sub-Saharan Africa. Market fundamentals strongly support this approach, as demand for generic drugs is high and they require significantly less capital investment than the development of original drugs. Furthermore, generic drugs generally face fewer regulatory hurdles for market approval.
The report also emphasizes that pharmaceutical independence in sub-Saharan Africa will be achieved gradually over the long term, combined with realistic short-term milestones, including strengthening clinical trial capacity as well as self-sufficiency in the production of generic medicines and essential vaccines.
The African pharmaceutical industry is expected to move from simple generics to more complex generics, then to biosimilars—highly similar versions of biological drugs—and ultimately to innovative originator drugs. This phased approach is expected to lay the groundwork for more ambitious sovereignty goals as economies grow and fiscal capacity expands.
Encouraging developments are already supporting this trajectory, notably the expansion of vaccine manufacturing capacity following the COVID-19 pandemic and progress in regulatory harmonisation, through the launch of the African Medicines Agency (AMA), which is reducing barriers to intra-African pharmaceutical trade.
Furthermore, countries such as South Africa and Kenya benefit from existing research infrastructure, well-established pharmaceutical sectors and skilled workforce, providing the basis for gradually strengthening capabilities.
walid kefi